Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I do not want to go back over the arguments that have been advanced about the merits of the credit union movement because they are very well known to us. Also well known to us is the intervention of the current Government during the difficulties a small number of credit unions ran into.

I am concerned about the protection of the unique ethos of the credit union movement. I have some reason to fear for the future. Of course there must be regulation, and after the lessons we have so painfully learned that is clear, but I question the appropriateness of credit unions being regulated by the Central Bank at all, notwithstanding the separate arrangement that is there.

8 o’clock

I am not sure the Central Bank understands the culture of the credit union movement. I do not wish to make any comment on the new regulator. When Matthew Elderfield was in the position, it seemed to me he did a good job in terms of his wider remit. However, somebody coming from the insurance industry in Bermuda does not know anything about the credit union movement in Ireland. They are different. Credit unions are indigenous to local parishes and communities in a way that is unique.

I recall when I brought in the Credit Union Act in 1997, it had broad support across the House. There was, however, pressure from outside for me to facilitate credit unions to be able to make mortgage finance available. I resisted that but I regret very much that a small number of unions managed or contrived to get around that. As a result, they found themselves in difficulty and brought down on the backs of the general credit union movement more restrictive regulation than would have otherwise been the case.

That ought not in any way to reflect on the small unions across the country without which the fabric of the local community would be undermined. Our society works on credit. Those of us in this House and those outside who earn a moderate income can buy a washing machine, a car or a television based on their ability to get credit. People on the bottom of the ladder find it very difficult to get credit, however. I brought the Consumer Credit Act through this House in 1995 which outlawed illegal moneylending. There are still many people in poor communities dependent on moneylenders, however. The possibility of the credit union movement being used to address that issue is absolutely essential. We should look again at the question of ensuring that above all we protect the ethos of the credit union movement.

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